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Debate arises over paid sick leave study

Supporters of a proposed workers' paid sick leave recently attacked a study released by the Madison Chamber of Commerce.

The study, conducted by private economic consulting firm Northstar Economics, predicts a paid sick leave law would cost the city $21 million in property-tax revenue. According to supporters, this significantly misconstrues the total economic impact the proposal would have on the city's budget.

But according to Ald. Austin King, District 8, other studies conducted by independent agencies found the estimated costs to be significantly lower than Northstar Economics' study.

Madison Chamber of Commerce executive assistant Lisa Loniello declined comment on the released report.

"We are not speaking on the credibility or the methodology of the study," she said.

Calls made to Northstar Economics were not returned as of press time.

But King said there were a number of problems with Northstar Economics' study.

"The study was thoroughly and fatally flawed," he said. "I'm not talking just about the basic statistics; I'm talking about the tone of the report."

The study, released Jan. 12, reported 185 local businesses would leave the city if a paid sick leave proposal were passed.

King, a primary supporter for a paid sick leave law, said the report asked the wrong question of respondents and thus caused miscalculations.

"They were asked if they would consider leaving Madison," he said. "Based on those circumstances, I'm sure many would consider, but would they leave?"

University of Wisconsin economist Laura Dresser said the largest problem with the study was the claim that property left by businesses would negatively impact the city.

"No further businesses will buy that property?" she questioned. "That is more absurd and, for me, that's the bigger error [in the study]."

According to Dresser, a paid sick leave law would create a 3.5 percent wage cost increase if workers used all of their sick-leave hours.

"I think it's a reasonable cost," she said. "Businesses can find a way to make up that cost."

Furthermore, King added the study used numbers that wrongly defined the borders of the City of Madison by using numbers from the metropolitan area that include Columbia, Dane and Iowa counties.

King said budget costs for a paid sick leave law is "a drop in the bucket, but it's an important drop."

Currently, 18 percent of Madison's workforce does not receive paid sick leave, according to Dresser.

"Basically, it's a low-wage labor-market issue," she said. "When they get sick, they face the choice of losing their income or going to work sick."

King echoed Dresser's comments and said the issue of Madison employees without sick leave is embarrassing. He said employees should not have to go to work sick because of financial problems.

"That's an abomination and complete abdication of Madison's progressive history," he said.

According to Dresser, the Chamber of Commerce wanted to find research to reflect its opposition to the paid sick leave proposal.

"It doesn't … necessarily mean [the research will] be erroneous, but it does seem to me [that] it delves in the less credible economic area," Dresser said.